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Conclusion
Zoo has continued its meandering
business direction with its exit, in early 2006, from the traditional video games business. The games publishing division, established only two years earlier, had represented the vast majority of the Company's
revenues but had tipped into loss following a poor Christmas (05). Zoo clearly does not fancy the risk/reward profile of traditional games publishing and intends to focus exclusively on interactive DVD publishing
and technology licensing.
The technology licensing business and the recent video games publishing performance, in particular, have proven highly cash consumptive and the Company has burned through £9m in the last two years. However, the interactive DVD publishing business continues to do well for the Company combining a mass-market installed base (even if awareness is low) and low production costs. The interactive DVD licensing business is finally beginning to pick up following some key contract wins in 2005 although it remains to be seen whether this momentum can be maintained in 2006 and beyond.
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